Banks Hike SMS Charges Over Telecom Tariff Increase – What You Should Know

GTBank, Other Banks Raise SMS Alert Charges from ?4 to ?6 Starting May 1

Nigerian banks, including GTBank and Globus Bank, have announced an increase in SMS transaction alert fees from ?4 to ?6, effective May 1, 2025. The decision comes in response to a 50% telecom tariff hike approved by the Nigerian Communications Commission (NCC) earlier this year.

This change reflects rising operational costs faced by telecom companies, which banks rely on for delivering SMS alerts to customers.

“Effective May 1, 2025, SMS alert fees will increase from ?4 to ?6 per message due to a recent hike in telecom service charges,” GTBank informed its customers.

Why the Charges Are Increasing

The NCC approved the telecom tariff hike — the first in over 10 years — on January 20, 2025, after pressure from telecom giants MTN, Airtel, Glo, and 9mobile. They cited surging inflation, naira devaluation, and rising energy costs.

• SMS: ?4 ? ?6
• Voice Calls: ?11/min ? ?16.25/min
• 1GB Data Bundle: ?1,000 ? ?1,400+

These new rates came into effect on February 11, 2025.

Rising Costs Across the Board

The hike comes amid harsh economic conditions:

• Inflation reached 34.8% in 2025 (up from 8.5% in 2013).
• The naira’s devaluation has driven up the cost of telecom infrastructure.
• Diesel prices for powering base stations jumped from ?230/litre to ?1,000+.
• MTN Nigeria reported a ?514.9 billion loss in the first 9 months of 2024.
• Airtel Africa lost $89 million in the same fiscal year.

Consumer Reactions and Concerns

The move has sparked backlash online, especially from low-income users and small business owners who rely heavily on SMS alerts for daily transactions. Many fear the new fees will further strain household budgets.

“This will hit small businesses the hardest — POS agents, market women, etc.” said Deolu Ogunbanjo, President of NATCOMS.

While the NCC says the increase is necessary to sustain the telecom sector and improve services, it has given operators three months to show measurable improvements or face penalties.

What’s Next?

Despite public frustration, telecom experts argue the new rates will:

• Unlock over $150 million in network investment
• Expand 4G coverage to 94% of Nigeria
• Connect 9 million more people, including 2 million in underserved areas

As the changes take effect, all eyes are now on telecom operators and banks to deliver on promises of better service and transparency.